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Before the New York trading session kicked off Monday morning, the gold market imploded and traded more than 1.8 million ounces in less than a minute during the London session. The selling frenzy looks like a flash crash that could have been triggered by a “fat finger” order. However, it’s not certain that it wasn’t just a big position looking for an exit before the year-half ends. In either case, it reveals some uncertainty in the gold market that we think will be amplified in gold miners.
We recommend a put on Newmont Mining Corp (NYSE:NEM) because the stock is right at resistance and could easily break support at $32 on the way back down.
‘Buy to open’ the NEM August 34 Puts (NEM170818P00034000) for a maximum price of $1.60.
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